The Top Digital Marketing Stats that Every Insurer Should Know

Over the past three years, the adaptation to digital has accelerated the pace of digital marketing, causing companies to invest more than ever into the online space if they want to keep up with competitors and connect to their customers.

In recent years, the world has witnessed a significant acceleration in digital adaptation, which has consequently led to the rapid growth of digital marketing. Causing companies to realise the importance of investing more than ever in the online space, that’s if they wish to stay competitive and successfully engage with their customers. As a result, businesses have recognised that they must keep up with the latest digital marketing trends and technologies to remain relevant in today’s fast-paced market and the shift towards digital has undoubtedly changed the landscape of marketing, as it has enabled companies to reach their target audience more effectively and efficiently.

Digital marketing provides businesses with the opportunity to create targeted campaigns, reach a broader audience, and track the results of their efforts in real-time, and these benefits have encouraged companies to prioritise their digital marketing efforts, as it has become increasingly clear that a strong online presence is essential for success in the modern marketplace. And one of those marketplaces is insurance, with UK insurance companies spending £322 million on online advertising in 2020, an increase of 3.3% from the previous year.

Since the rise in digital marketing, the insurance industry has had to adapt to a digital transformation to keep up with the evolving consumer behaviour, as customers are seeking speedy, convenient, and on-the-go solutions, pushing insurance companies to incorporate digital innovation to attract new customers and retainer existing ones. They have had to adapt in several ways, including investing in their website, leveraging social media, and spending money on pay-per-click advertising.

Gone are the days of surfing the yellow pages, calling a number from the television screen, or hiding from cold callers (we still do this, right?), as insurance customers are now surfing online for the best prices and experience, causing 75% of UK insurers to increase their investment in digital channels over the past two years.

If You’re Not Online, Where Are You?

It goes without saying that insurance companies expected they would eventually need to develop a digital strategy, as it’s simply an evolutionary process that has been on their radar for the past decade or so. However, no one anticipated being catapulted into the online space during the pandemic and as a result, insurance companies have been competing for paid media space, delving into the world of Google Ads, and investing more than ever in website development. In fact, 40% of UK insurers have introduced new digital products and services in the past two years.

Epsilon revealed that 59% of UK insurance customers prefer to purchase insurance online, moving away from the traditional door-to-door salesmen, cold calls, TV adverts with a phone number, and postal advertising, forcing insurance companies to adapt their marketing strategies to focus on performance within the digital world. As the popularity of online insurance purchasing continues to grow, insurance companies must continue to innovate and refine their digital marketing strategies to remain competitive and meet the evolving needs of their customers.

Another interesting stat is that 29% of UK insurance customers said that they had used an online chatbot to interact with their insurance provider in the past year. This highlights the increasing adoption of chatbots within the insurance industry and how they aim to improve customer service and streamline operations. Chatbots are automated tools that can help customers with common queries, provide personalised recommendations, and even guide them through a process. By using chatbots, insurance companies can provide 24/7 support to their customers, reduce waiting times, and free up their customer service agents to handle more complex queries – there’s no reason not to have one on your site because as customers become more accustomed to using chatbots to interact with businesses, insurance companies that embrace this technology are likely to improve customer satisfaction and retention rates.

Ease of access has been a common topic here, so it’s no shock that 80% of UK insurance customers said that they would prefer to use an app to manage their insurance policies, rather than over the telephone or via post, which is a huge jump from the days of receiving a booklet in the post that’s piled with information about your policy – customers are preferring self-sufficient, on the go solutions that they can access at any point, being unreliant on office opening times and long waits in a telephone queue. Insurance companies that prioritise mobile app development and provide a seamless mobile experience are likely to gain a competitive advantage and increase customer loyalty.

A Personalised Approach

A personalised, tailored approach has become much more prominent within insurance offerings, with 55% of UK insurance customers would be willing to pay more for insurance that is tailored to their needs.  Another interesting stat is that 80% of UK insurance customers said that they would be more likely to purchase insurance if they received personalised recommendations, highlighting that the UK insurance market is pining for a tailored insurance plan to suit their individual needs. Personalised recommendations can help customers find insurance policies that best fit their needs, resulting in higher customer satisfaction and retention rates. With the availability of customer data, insurance companies can leverage technology such as AI and algorithms to provide personalised recommendations that are based on a customer’s characteristics, such as age, location, and lifestyle. By offering personalised recommendations, insurance companies can improve their sales conversions and establish stronger relationships with their customers.

Personalised offers are another way that insurance companies can establish relationships since 33% of UK insurance customers said that they would be more likely to purchase insurance if they receive personalised offers, and with data being a highly important tool within digital marketing it’s more important than ever to understand your customer and their needs.

Data protection has been a hot topic over the past few years, especially since Apple announced their IOS Privacy update, giving users an opt-out option from tracking on their devices. Since data protection has been at the forefront of customers’ minds, it’s really interesting that 71% of UK insurance customers said that they would be willing to share their personal data with insurance companies in exchange for lower premiums. The willingness of insurance customers to share their data in exchange for lower premiums indicates a shift in consumer behaviour towards a more data-driven approach to insurance and by sharing their personal data such as age, gender, location, health status, and lifestyle habits, customers can receive personalised insurance policies and premiums that are tailored to their circumstances.

Spending More, Gaining More

Insurance is known to be a competitive industry, especially when it comes to price. In the UK, over 75% of customers use insurance comparison websites to compare prices and coverage, and even if all of those people may not purchase, in 2020 it was revealed that 36% of consumers use comparison sites to purchase home insurance53% use comparison sites to purchase car insurance, 29% purchase travel insurance and 16% use comparison sites to purchase life insurance. So it’s not surprising that In 2020, the UK insurance industry spent £1.9 million on comparison site advertising.

Businesses are certainly spending more in the digital scope, and since the UK insurance market is expected to reach a value of £77 billion by 2025, we only expect to see more and more insurance companies adapting to a digital-first approach. Strong digital marketing can effectively engage customers and change their perception of insurance from a mundane and unexciting transactional experience to an enjoyable and approachable one, by adapting marketing strategies to accommodate evolving consumer behaviour and aligning them with business objectives. We’ve learned that customers have become eager for a personalised experience and by adapting to this, insurance companies will have a much greater chance of converting new customers and retaining current ones.

If You’re Still Unsure as to Whether Insurance Companies Should Be Investing in Digital Marketing, Here Are 10 More Stats to Convince You

  1. According to a survey by Accenture, 80% of insurance customers expect digital interactions with their insurance providers.
  2. A study by Deloitte found that 44% of insurance customers use digital channels to research insurance products before making a purchase.
  3. In the UK, Google receives over 3.5 million insurance-related searches per month, according to a study by Millward Brown Digital.
  4. A study by Google found that 83% of insurance customers use search engines to research insurance products.
  5. A survey by Adobe found that UK insurers that use social media to engage with customers have a 57% higher customer retention rate than those that don’t.
  6. According to a survey by HubSpot, email is the preferred communication channel for 86% of UK insurance customers.
  7. A report by EY found that digital transformation is a top priority for 90% of insurance executives in the UK.
  8. A study by Bain & Company found that insurance customers who have a positive experience with digital channels are more likely to purchase additional policies from the same provider.
  9. A survey by Aviva found that 59% of UK insurance customers prefer to purchase insurance online.
  10. A study by HubSpot found that 69% of UK insurance marketers say that digital marketing is the most cost-effective way to reach their target audience.

Here at Embryo, we’re used to working with businesses across all sectors of the insurance industry. If you’re in this competitive industry and want to understand how marketing can help ‘ensure’ your future and accelerate past your competitors then get in touch with us today by phone at 0161 327 2635 or email [email protected].


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